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solong [7]
3 years ago
9

Given the following historical demand and forecast, calculate the Tracking Signal in Week 3:Week 1 Demand: 50 Forecast: 49Week 2

Demand: 54 Forecast: 51Week 3 Demand: 58 Forecast: 57
Business
1 answer:
Damm [24]3 years ago
4 0

Answer: 3

Explanation:

Week 1:

Demand forecast = 50 - 49 = 1

Week 2:

Demand forecast = 54 - 51 = 3

Week 3:

Demand forecast = 58 - 57 = 1

Then, MAD = (1+3+1) / 3 = 5/3

Then, tracking signal will be:

= (1+3+1)/5/3

= 5 ÷ 5/3

= 5 × 3/5.

= 3

The tracking signal in week 3 is 3

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Explanation:

As this amount is a constant amount, it is an annuity. To find out the total amount after a certain period of time, use the future value of annuity formula.

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